Global InequalityGlobal Inequality

The nature of global inequalityThe nature of global inequality– Rural PovertyRural Poverty– Is global inequality getting better or Is global inequality getting better or

worse?worse? Theories of global inequalityTheories of global inequality

– Modernization theoryModernization theory– Dependency TheoryDependency Theory

The nature of global The nature of global inequalityinequality In the world today, the richest 25% In the world today, the richest 25%

of the population receives 75% of of the population receives 75% of the world income.the world income.

The richest people of the world live The richest people of the world live in North America, Europe, and in North America, Europe, and Australia.Australia.

The poorest people of the world live The poorest people of the world live in Africa, India and Southeast Asia.in Africa, India and Southeast Asia.

People in poor countries have People in poor countries have little in the way of possessionslittle in the way of possessions

Diets are often poor and lack Diets are often poor and lack meat , fruit and vegetablesmeat , fruit and vegetables

Medical care is limitedMedical care is limited As a result, life expectancy is As a result, life expectancy is

shortshort

In poor countries, the poorest In poor countries, the poorest people live in rural areas.people live in rural areas.

Growing populations and Growing populations and traditional farming techniques traditional farming techniques overstress the land, leading to overstress the land, leading to erosion and deforestation and erosion and deforestation and poor yields.poor yields.

Government policies tend to favor Government policies tend to favor city peoplecity people– E.g. caps on prices of grain help city E.g. caps on prices of grain help city

people, but hurt rural farmerspeople, but hurt rural farmers

Is global inequality Is global inequality getting better or getting better or worse?worse? Depends on how you measure itDepends on how you measure it By country, it is getting worseBy country, it is getting worse For individuals, it is getting betterFor individuals, it is getting better Why is this? Because the most Why is this? Because the most

populous poor countries, China populous poor countries, China and India, have rising Gross and India, have rising Gross Domestic Products (GDPs).Domestic Products (GDPs).

Theories of Global Theories of Global InequalityInequality Modernization theory (Rostow Modernization theory (Rostow

1960)1960) Suggested that all countries Suggested that all countries

would inevitably go through the would inevitably go through the four stages of developmentfour stages of development

1.1. The traditional societyThe traditional society

2.2. The preconditions for takeoffThe preconditions for takeoff

3.3. The drive to maturityThe drive to maturity

4.4. The age of high mass The age of high mass consumptionconsumption

Modernization theory has been Modernization theory has been criticized for being over optimisticcriticized for being over optimistic

50 years after it was created, 50 years after it was created, many countries in the world are many countries in the world are not developed.not developed.

Dependency theoryDependency theory

Dependency theory suggests that Dependency theory suggests that the reason why poor countries do the reason why poor countries do not develop is because they are not develop is because they are forcibly dependent on rich forcibly dependent on rich countries.countries.

Poor countries sell raw materials Poor countries sell raw materials that are used for the industries of that are used for the industries of the rich countries.the rich countries.

Means that most of the profits of Means that most of the profits of manufacturing stay in rich world.manufacturing stay in rich world.

No capital to develop industries in No capital to develop industries in poor countries.poor countries.

Problems – some countries Problems – some countries initially dependent on selling raw initially dependent on selling raw materials have managed to build materials have managed to build industry – e.g. Canada, Australia, industry – e.g. Canada, Australia, U.S.U.S.

Places like China and India have Places like China and India have been able to develop.been able to develop.

China and India have been able to China and India have been able to turn their one resource – people – turn their one resource – people – into an asset (cheap labor)into an asset (cheap labor)